Blog Archives

Ripoffs in Armenia are like mullets: business up front, party in the back. That is, they’ll either try to hit you up for a large amount before the transaction or ask you for more just before you’re done. If up front they’ll walk away from the deal if you say no. If on the back-end they’ll back down and play by the agreement. And this is a pretty standard tactic around the world – I’ve written about the back end ripoff in India.

Armenia in General

Now I want to make myself clear up front – I think Armenians are generally a very honest bunch. But it’s hard making a living here. There’s nearly no room for profit and what you do get is usually eaten up by some random thing that comes up like official bribes, injury or having your flower shop run over. So I don’t blame Armenians – or any honest business scammer for that matter – from trying to make an easy Dram or Drachma. But that doesn’t mean I have to just give it up. I refuse to be a stereotypical sucker.

Business Up Front

For a certain segment of the ripoff artists out there, they’re willing to risk a low profit for a huge one. Some taxi drivers, for example, when they see you with bags in a touristy part of town will refuse you the standard fare and will only quote you an exorbitant one. Even if they know there’s only a 50% chance you’ll go with them. If they can make in 30 minutes what they’d normally make in 5 hours they’ll take the chance.

And when you stand up for yourself and refuse to pay that, the up front ripoffs tend to dissolve. They’ll usually let you walk away but will back down and pay your price. If they pay your price then you’re probably still getting ripped off, just not as bad.

There’s a large segment of the population who calculate how much to charge by adding a percentage to the cost. That’s what Marx and Engels argued was the true value of anything. It’s easy to see why they felt that way. But there are several faulty assumptions there, such as assuming no value for time not worked (ie. either infinite time or full time employment), taking risks (ie. someone might pay more for a car than a horse-drawn carriage) and other factors. Thus is the folly of supply-side economics.

Party in the Back

The other typical ripoff is when someone asks you for more just before you’re done. The reason given is usually something like you used more resources than you were supposed to, it took extra long or somehow otherwise you owe extra. Sometimes they will argue about what you agreed on or just simply say they want more. In taxis they might make the excuse that you had bags to put in the trunk, or it is night, or the airport cost is more, or they may just drive around in circles hoping you’ll think it was a long way away. At restaurants they may add extra items to your bill or round up when giving you change.

Not all of these tactics are outright fraud, many are just the custom. If your bill is 10.78 and there are no pennies in the country it may be expected that you’ll pay 10.80 instead. And in some countries there is a higher fare for taxis at night. But these are the exceptions. And if you’ve already negotiated a price, or if the meter is running just pay what you should.

Avoiding Ripoffs

When negotiating up front, don’t feel like you have to buy from a particular vendor. If you don’t know the price of something it’s OK to just ask casually and walk away. Odds are there’s a nicer one of whatever you’re eyeing at a shop a couple of doors down. If you get to the point of negotiating without knowing some relative costs you’re already at a disadvantage. Also know what you’ll pay up front, don’t let them decide that for you. That’s true for services as well as for products.

Don’t back down when asked for more at the end. Agree on a price and stick to it. Show the price written down on your phone’s calculator or similar. Some of these people are just bullies – if you stand up to them they quickly shrink away, but if you let them take advantage of you they’ll keep doing it. And don’t feel like you have to stay engaged, sometimes just walking away will make them stop asking. That’s especially true for taxis where, once you’ve paid the fair fare there isn’t any need to stick around. The taxi driver might call after you a time or two but he’s not going to follow you.

And keep in mind that some people will try both approaches. They’ll beat you up on the front end and at the end they’ll ask for more at the end. I’ve found that typically if you compromise on your price up front they’ll more frequently try to get money at the end. But if you stick to your price they’ll judge you as unlikely to pay.

In some places there are certain signals to make or avoid making. For example in Armenia the travelers who are ethnically Armenian but from a wealthy country tend to speak a different dialect. Locals pick up on that and will try to take advantage of their long-lost cousins. At markets in China the sellers and buyers use hand signals to signify quantity – if you know the hand signals you’re saying that you’ve done this all before and won’t be fooled. And negotiation has its rule of thumb in different places. In some you cut the price in half and offer that; in others you drop a zero or two from the asking price. And it’s always important to know how to check the authenticity of what you’re buying as compared to the knock-offs. For example, silk threads will burn separately, whereas the imitation synthetic materials melt together. You can search for how to spot a fake on the Internet and you’ll be informed when you buy. Often when you show this knowledge the shop keeper will go into the back or reach under the counter for the real stuff, smile at you and treat you with more respect.

Getting ripped off is a part of traveling. When you find out you’ve been rooked, laugh about it. It probably wasn’t for very much and use it as a chance to learn a lesson for next time. Applaud the savvy shopkeeper who can spot a sucker who has more money than sense…even if sometimes that sucker is you.